This stock’s special dividend has been delayed. So why are analysts still keen on it?

SINGAPORE (Nov 14): RHB Research has maintained its “buy” rating on Silverlake Axis, even after the group’s special dividend from its sale of Global InfoTech (GIT) is expected to be delayed to 2QFY17.

RHB’s analyst Jarrick Seet noted that the group is expected to post a gain of RM267.7 million ($117.7 million) and receive proceeds of RM339.8 million from the sale of its allocated shares in GIT.

“We understand that the proceeds transfer is to take longer than expected due to the procedures involved, but expect this to be completed by 2HFY17,” writes Seet in a note on Monday.

---

Related Stories

• Lim & Tan Securities maintains ‘buy’ on Grand Banks Yachts; almost doubles TP to $1.05
• Brokers’ Digest: AEM, Prime US REIT, Hyphens Pharma, Seatrium, Valuetronics, DFI Retail Group, CDG, Centurion, Sembcorp
• Citi maintains ‘buy’ on Keppel DC REIT after acquisition of two data centres in Genting Lane

---